The Internal Rate of Return (to nearest whole percent)is
A) 10%.
B) 18%.
C) 20%.
D) 24%.

Question

The Internal Rate of Return (to nearest whole percent)is
A) 10%. 
B) 18%. 
C) 20%. 
D) 24%.

Quizplus · Accepted Answer

To calculate the IRR, we need to find the discount rate that equates the present value of cash inflows with the initial investment. By using the cash flow table, we can input the values into Excel or a financial calculator and solve for the IRR. In this case, the IRR is closest to 20%, which means that if the required rate of return is less than 20%, this investment will be profitable. Therefore, choice C is the best option.

The Internal Rate of Return (To Nearest Whole Percent)is